Van Eck Global - Since 1955

International Investors Gold FundIIGCX

  • Daily Price   as of 11/21/2014

    NAV DAILY CHANGE
    $7.87  $0.03 / +0.4%
  • Class C Details: IIGCX

    INCEPTION DATE GROSS/NET EXPENSES1
    10/03/03 2.30%/2.20%
  • Gold Commentary: October 2014

    Joe Foster Commentary Tab

    By: Joe Foster, Portfolio Manager  

    Gold market continues to suffer on growth concerns, dollar strength 

    October brought wide swings in sentiment and volatility across many markets. Early in the month, concerns that sluggish growth in Asia and Europe might create a drag on the U.S. economy sent stocks tumbling while the U.S. dollar weakened. The gold price bounced higher after testing the critical $1,200 ($1,180 intraday) level on October 6, rising to $1,250 per ounce on October 21. The mood changed 180-degrees when U.S. economic reports showed strong gains in industrial production, leading indicators, and consumer confidence. At the October 28 Federal Open Market Committee (FOMC) meeting, the Federal Reserve (the “Fed”) confirmed an end to quantitative easing (QE) and upgraded its assessment of the U.S. economy. Stocks rebounded from their mid-month lows and the DJIA went on to make new all-time highs after the Bank of Japan’s October 31 plans to significantly expand its QE program. The U.S. dollar soared, sending the U.S. Dollar Index (DXY) to new four-year highs. Giddy stock markets and the U.S. dollar strength sent gold spiraling downward.

    Gold stocks reacted poorly to the early October bounce in the gold price. They subsequently fell hard when gold sold off into month-end. Several companies reported disappointing third quarter results, however, this follows many quarters of good results and does not represent a return to the bad old days of overpromise/under deliver.

     

     

    Market Outlook  

    After peaking at $1,921 per ounce late in 2011, the gold price corrected in 2012. The correction turned into a cyclical bear market in 2013. The depth and duration of this bear market has gone beyond anything we imagined. It reminds us of two other past markets. Gold and gold shares fell a similar amount in the 1996 to 2000 bear market. The negative sentiment toward the sector was similar and the selling of gold from central banks then parallels the selling we have seen from the gold bullion exchange-traded products (ETP) in the current bear market. The current market is also similar to the 2008 crash, when each time we thought the market was finding a floor, another wave of selling would drop it to new lows. It seems despair has reached levels comparable with the depths of these previous bear markets.

    In today’s world, most, if not all, governments are seeking to weaken their currencies. Leaders of Western civilization, in our view, are running their finances like banana republics, with policies that provide cheap financing that enable governments to pile on more and more debt at little cost. It appears central banks are pumping up credit and liquidity to boost asset prices in the hope it will somehow tow the economy along. It is a risky strategy that we believe will eventually come unraveled.

    Before gold can move higher it needs to establish a bottom. We believe there are three factors that could help stabilize the market:

    • physical demand from Asia
    • an end to bullion ETP redemptions
    • announcements of mine harvests, closures, or production cuts.

    Read full October Commentary » 

  • Video Viewpoint: Gold

    M&A in Gold: Reining in Costs and Sustainability of Super Majors

    Joe Foster
    Portfolio Manager, Senior Gold Strategist

    "[Companies] such as Barrick, Newmont, and AngloGold went through a period of conglomeration when large companies were merged together to create what we call "super-majors” and it's very hard to sustain the super major model."



    View now »


    M&A in Gold: 2014 and Beyond

    Joe Foster
    Portfolio Manager, Senior Gold Strategist

    "We've seen subdued M&A activity over the last several years due to the recent bear market in gold. This year, however, there has been a significant pickup."



    View now »


    Global Research: Mining in Burkina Faso

    Joe Foster and Ima Casanova
    Gold Investment Team

    "We invest across the spectrum, but in Burkina, it is mostly mid-tier and junior companies that are active. Most of Burkina’s gold deposits are moderate to smaller-sized, so we find smaller companies there. Because of the favorable operating environment, there are quite a few interesting opportunities."



    View now »


    Gold 2014: Investment Demand, Geopolitical Risks, and Corporate Discipline

    Joe Foster and Ima Casanova
    Gold Investment Team

    "Emerging markets geopolitical risks have probably been the main driver of gold this year. People are worried about financial stability with headlines coming from Thailand, Venezuela, Ukraine, and Turkey. People are also concerned about the growth in China and the Chinese banking system."



    View now »


    Gold 2Q 2014: Review of Earnings Results and Costs

    Joe Foster and Ima Casanova
    Gold Investment Team

    "The market focused more on cost and operating results, and did not necessarily punish companies that missed earnings expectations"



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    Gold: Back on Track for 2014?

    Joe Foster
    Portfolio Manager, Senior Gold Strategist

    "In the near-term, $1200 is an important technical level. The gold market fell to around the $1200 level in June of this year, and we're retesting those lows right now in the wake of the Fed announcement that they will begin tapering in 2014."



    View now »


    Global Research: Mining in the Dominican Republic

    Joe Foster
    Portfolio Manager, Senior Gold Strategist

    "There have been some exciting discoveries, some great drill results, come out of the Dominican Republic."



    View now »


    Global Research: Mining in Greece

    Joe Foster
    Portfolio Manager, Senior Gold Strategist

    "Greece is taking a second look at mining and we are seeing some of it gold properties being developed. They have created a fast-track program for new businesses..."



    View now »


  • The Many Uses of Gold

    Gold Globe

    As far back as 1500 BC, Egyptians and other ancient peoples used gold for currency, and its importance has not waned since. In today’s world, we may not carry gold coins in our pockets, but gold remains one of the most highly valued commodities for cultures across the globe.

    Sound Currency
    Gold’s historic role as a sound currency alternative is recognized universally — from farmers in India whose high-carat jewelry is a form of savings, to investors in the West who accumulate coins and bars, to central bankers around the globe who hold gold in their foreign exchange reserves.

    Powerful Investment Tool
    Today, gold is recognized as a potentially powerful tool in an investment portfolio. Gold may:

    • Keep pace with inflation and offer a hedge against currency devaluation.
       
    • Generate positive returns in periods of economic stress and political/economic upheaval.
       
    • Provide diversification through a low correlation to the movements of the financial markets.
       

  • Additional Resources

     
  • Important Disclosure 

     Unless otherwise stated, portfolio facts and statistics are shown for Class A shares; other classes may have different characteristics. 

    NAV: Unless you are eligible for a waiver, the public offering price you pay when you buy Class A shares of the Fund is the Net Asset Value (NAV) of the shares plus an initial sales charge. The initial sales charge varies depending upon the size of your purchase.  No sales charge is imposed where Class A or Class C shares are issued to you pursuant to the automatic investment of income dividends or capital gains distributions. It is the responsibility of the financial intermediary to ensure that the investor obtains the proper “breakpoint” discount. Class C, Class I and Class Y do not have an initial sales charge; however, Class C does charge a contingent deferred redemption charge.  See the prospectus and summary prospectus for more information.

    1Van Eck Associates Corporation (the “Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding acquired fund fees and expenses, interest expense, trading expenses, dividends and interest payments on securities sold short, taxes and extraordinary expenses) from exceeding 1.45% for Class A, 2.20% for Class C, 1.00% for Class I, and 1.10% for Class Y of the Fund’s average daily net assets per year until May 1, 2015. During such time, the expense limitation is expected to continue until the Board of Trustees acts to discontinue all or a portion of such expense limitation.

    Van Eck Associates Corporation (the “Adviser”) has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding acquired fund fees and expenses, interest expense, trading expenses, dividends and interest payments on securities sold short, taxes and extraordinary expenses) from exceeding 1.45% for Class A, 2.20% for Class C, 1.00% for Class I, and 1.10% for Class Y of the Fund’s average daily net assets per year until May 1, 2015. During such time, the expense limitation is expected to continue until the Board of Trustees acts to discontinue all or a portion of such expense limitation.

    2The NYSE Arca Gold Miners Index (GDM) is a modified market capitalization-weighted index comprised of publicly traded companies involved primarily in mining for gold. The S&P® 500 Index, calculated with dividends reinvested, consists of 500 leading companies in leading industries of the U.S. economy. The U.S. Dollar Index (DXY) indicates the general international value of the U.S. dollar. The DXY does this by averaging the exchange rates between the U.S. dollar and six major world currencies. All indices are unmanaged and include the reinvestment of all dividends, but do not reflect the payment of transaction costs, advisory fees or expenses that are associated with an investment in the Fund. An index’s performance is not illustrative of the Fund’s performance. Indices are not securities in which investments can be made.

    The views and opinions expressed are those of Van Eck Global. Fund manager commentaries are general in nature and should not be construed as investment advice. Opinions are subject to change with market conditions. Any discussion of specific securities mentioned in the commentaries is neither an offer to sell nor a solicitation to buy these securities. Fund holdings will vary.

    You can lose money by investing in the Fund. Any investment in the Fund should be part of an overall investment program, not a complete program.  The Fund is subject to the risks associated with concentrating its assets in the gold industry, which can be significantly affected by international economic, monetary and political developments. The Fund’s overall portfolio may decline in value due to developments specific to the gold industry. The Fund’s investments in foreign securities involve risks related to adverse political and economic developments unique to a country or a region, currency fluctuations or controls, and the possibility of arbitrary action by foreign governments, including the takeover of property without adequate compensation or imposition of prohibitive taxation. The Fund is subject to risks associated with investments in debt securities, derivatives, commodity-linked instruments, illiquid securities, asset-backed securities, CMOs and small- or mid-cap companies. The Fund is also subject to inflation risk, short-sales risk, market risk, non-diversification risk and leverage risk. Please see the prospectus and summary prospectus for information on these as well as other risk considerations.

    Investing involves risk, including possible loss of principal. An investor should consider investment objectives, risks, charges and expenses of the investment company carefully before investing. The prospectus and summary prospectus contain this and other information.  Please read them carefully before investing. 

    Not FDIC Insured — No Bank Guarantee — May Lose Value 

    Van Eck Securities Corporation, Distributor
    335 Madison Avenue, 19th Floor
    New York, NY 10017
    800.826.2333